UAE FTA Introduces Refund Policy for Tax Service Fees Effective August 1

Starting August 1, the Federal Tax Authority (FTA) will offer refunds on fees paid for "private clarification" of tax services if the requested clarification is not issued.

The "private clarification" service allows companies to request further details on one or more taxes from the FTA. This service has been fee-based since June 1, 2023.

If the requested clarification is not provided, the entire fee will be refunded if the request pertains to multiple taxes.

For requests covering several taxes, if clarification is issued for only one, a partial refund will be provided, calculated based on the difference between the fee for multiple taxes and the fee for a single tax.

Refund Conditions

Under Federal Tax Authority Decision No. 5 of 2024, dated July 19, refunds will be granted in the following situations:

* The request for private clarification is withdrawn by the applicant within two business days of submission.

* The clarification request is submitted by someone not registered for Corporate Tax and does not pertain to tax registration.

* The applicant is undergoing a tax audit by the Authority at the time of the request.

* The clarification request concerns procedures related to a decision already issued by the Authority.

* The request duplicates another pending request by the same applicant on the same subject and documents.

* The request pertains to a topic currently being reviewed by the Ministry of Finance for potential tax legislation changes.

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